In this economic world we live in everything has a cost, and overspending is easily done. There are many contributing factors towards overspending; however, knowing the causes behind overspending is the key to controlling spending habits.
Here is a look at some of the main causes of overspending:
Swipe and it’s gone
It can be easy to overspend, simply because in today’s modern world money is easily obtainable. With credit and debit cards readily available, spending money couldn’t be simpler. With a simple swipe of the card, the transaction is made which isn’t the same as handling money, and this takes the reality away, making it easier to get carried away. It can be easy to lose track of spending, as there is no handling of physical cash, so overspending can occur easily.
Consumers are bombarded with subliminal messages in everyday life, as everywhere they turn there are adverts that subconsciously work into their mind without them realizing. Marketing messages, media and advertising are hugely responsible for consumers overspending, as they entice shoppers to part with their cash for items that they may not have bought, had they not been bombarded by adverts for the product. Adverts are on almost everything one comes into contact with, from magazines, to wall posters, televisions and radio adverts, not to mention walking adverts, yes, shoppers with carrier bags emblazoned with shop logos, which all work on getting consumers to shop, shop, shop!
Shopping has never been so easy
There is no way of getting away from spending. As If there’s not enough shops and stores to encourage spending, purchases can also be made 24 hours a day from the comfort of one’s home, either over the phone or on-line. In addition, there are shopping channels, and not to mention all the fliers and catalogs that are free-loaded onto consumers.
As far as grocery shopping is concerned, this can take a massive chunk out of the budget, as shopping bills continue to increase. It is easy to be tempted by the snack foods that are crammed in every corner of the grocery store which bumps up the cost of the grocer bill. Along with the many other marketing tactics supermarkets use to get consumers to part with their cash.
A good tactic that retailers use is price slashes. There are so many sales, it seems like there’s a sale every day. Huge reductions dazzle shoppers, almost putting them into a hypnotic state. These clever marketing techniques are a great way to get shoppers to believe that this is a bargain not to be missed. It can be so easy to be lured in, and without thinking the shopper has already bought the item believing that the saving is so great, they may pick up another item to buy alongside it. It is almost impossible to resist temptation, and the urge to spend takes over, leaving the shopper with items that are not necessary.
Other reasons to spend
Shopping can be seen as retail therapy, as it offers a form of comfort. It can also give that feel good factor, as the shopper is dazzled under bright lights admiring all that is on offer. When a deal has been secured the shopper feels at ease, and is satisfied. Shopping is a habit that society seems to be victim to. Many shop without reason or need; it is more of a want, which is a good reason for overspending. Another reason why people shop is to release negative feelings. If one is feeling stressed or low, shopping can offer support and give a brief feeling of happiness. Of course, shopping can be to cure boredom, and it is almost a hobby, as it kills time.
By understanding the causes and contributing factors of overspending, it should allow consumers to reduce expenditure, and change the economy.